‘Outgoing’ govt shies away from major fuel price hike

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ISLAMABAD: The government on Monday could not announce the fortnightly adjustment in the prices of petroleum products, with consultations continuing into the early hours of Tuesday.

However, a 17.5pc increase was announced in the producer price of liquefied petroleum gas (LPG), as well as a 13.5pc raise in the LPG consumer sale price for August.

According to an Ogra notification, the LPG price was increased by Rs281.5 per domestic cylinder of 11.8kg. The new producer price is Rs1,886.30 per 11.8kg cylinder, while the consu­mer price is Rs2,­373.64 per cylinder.

A top official said the government was finding it difficult to announce a major price increase just before it leaves office. Based on existing tax rates, the prices of petrol and high speed diesel are set to go up by about Rs22 and Rs5 per litre, respectively.

Finance Minister Ishaq Dar remained engaged for hours with the Ogra chairman, his team, and petroleum division officials, to find ways to avoid jacking up prices, or at least a way to minimise the increase.

But all remedies, including cutting oil companies’ premiums, have already been exhausted. The meeting ended at 2am without any announcement. A price increase could not be ruled out later this week, following the approval of the prime minister and other coalition partners, officials said.

Published in Dawn, August 1st, 2023

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